Ask Colin

US writers refer to "points". What does this mean and how is it applied in Australia?

A 'point' is one dollar. So if a share is selling for $38 and it falls one opoint, it has fallen to $37.

US stocks generally trade at much higher prices than Australian stocks.

I find it useful as a rough rule to use a factor of 10.

So, Australian stocks usually trade for between $1 and $10. US equivalent stocks trade for between $10 and $100.